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Contents 


1  Memorial  showing;  the  wants  of  the  University.  Nc 

1875. 

2  Same  .  1875-1876. 

3  Same.  1877-78. 

3a  Report  of  the  Regents  to  the  Constitutional  convc 

4  Report  of  Commission  to  examine  into  and  report  c 

condition  of  certain  funds,  etc.  in  relation  tc 
State  university,  1879. 

5  Memoifrial  of  the  Regents  on  the  wants  of  the  Uni-v 

Deo.  31,  1880. 

6  Same.  Feb.  3,  1880. 

7  Memorial  to  Congress  (regarding  investment  of  mor 

derived  from  sale  of  lands  donated  by  Congress) 
28,  1882. 

8  Report  of  Law  committed  of  the  Regents  on  the  act 

Congress  of  July  2,  1862. 


9  University  of  California  meeds}  Jan.l,  1885. 

10  Senate  bill  No.  49.  Jan  18.  1887.  An  act  to  provi 

for  the  permanent  support  of  tve  University. 

11  Reasons  for  supporting  bill  to  provide  for  the  p* 

manent  support  of  the  University.  Jan.  1887. 

12  Communication  regarding  funds  for  Experiment  stat 

Dec.  6,  1887. 

13  Report  of  the  specie  1  committee  on  the  Morrill  cc 

aid  act.  Mar.  1891. 

* 

14  Appeal  to  the  Alumni  of  the  University  by  a  Comml 

on  legislation  ap-ointed  by  the  Regents  to  arov 
interest  in  securing  funds  for  tve  University. 
25,  1894. 


^,     1887>  for  appropriation  c 

17  1250,000  for  buildings. 

18  Report  of  Committee  on  ways  and  rneans.  May  20,  1C 

19  Report  on  establishment  of  fee  for  incidentals.  rl 


14 

contact  with  the  rest  of  the  rising  and  cultured  youth  of  the  State ; 
and  if  Mr.  Merrill's  own  statement  is  to  be  believed,  that  was  assur- 
edly not  the  object  of  the  "  Morrill  grant." 

In  conclusion,  allow  me  to  suggest,  that  the  first  thing  needful  for 
rendering  the  aid  of  science  accessible  to  the  rural  population  is,  that 
the  rudiments  at  least  of  natural  science  should  be  effectually,  and 
not  only  nominally,  taught  in  the  common  schools.  The  reason  why 
this  is  not  now  done  is  simply  that  there  are  too  few  teachers  com- 
petent to  give  such  instruction,  and  if  the  University  does  no  more 
than  supply  these  teachers  it  will  have  done  the  greatest  possible 
service  to  the  cause  of  agriculture.  Then,  indeed,  "  farm  schools  " 
scattered  over  the  country  could  do  real  service,  because  they  would 
have  suitable  material  to  work  upon.  But  so  long  as  there  are  no 
teachers,  nft  law  or  constitutional  provision  can  create  efficient 
schools. 

If  there  is  any  farther  information  that  I  can  furnish  you,  please 
let  me  know,  and  I  will  do  so  as  rapidly  as  possible. 
Very  respectfully  yours, 

EUG.  W.  HILGARD. 


REPORT  OF  COMMISSION 


TO 


EXAMINE  INTO  AND  REPORT 


CONDITION  OF  CERTAIN  FUNDS,  ETC. 


IN 


RELATION  TO   THE  STATE   UNIVERSITY, 


SACRAMENTO: 

STATE  OFFICE  :  I  '  F.  P.  THOMPSON,  SUPT.  STATE  PRINTING. 

1879. 


REPORT  OF  COMMISSION 


EXAMINE  INTO  AND  REPORT 


CONDITION  OF  CERTAIN  FUNDS,  ETC. 


IN 


RELATION  TO   THE  STATE  UNIVERSITY. 


SACRAMENTO: 

STATE  OFFICE  :  :  :  F.  P.  THOMPSON,  SUPT.  STATE  PKINTING, 

1879. 


REPORT. 


SACRAMENTO,  November  4th,  1879. 

To  the  Honorable  the  Senate  and  Assembly  of  the  State  of  California'. 
GENTLEMEN:    The  Legislature  of  1877-8  enacted  as  follows: 

SECTION  1.  The  Controller  of  State,  the  Surveyor-General,  the  Attorney-General,  and  State 
Treasurer  are  hereby  appointed  a  Commission  for  the  purpose  of  examining  and  reporting  to 
the  next  Legislature  the  condition  and  disposition  of  the  Congressional  Seminary  Land  Grant 
of  seventy-two  sections  and  interest  arising  therefrom,  the  Congressional  Public  Building  Land 
Grant  of  ten  sections  and  interest  arising  therefrom  ;  the  transfer  of  certain  bonds  in  accordance 
with  an  Act  entitled  "An  Act  requiring  the  Controller  of  State  to  transfer  certain  funds,"  as 
provided  for  in  Section  1  of  said  Act,  approved  March  26th,  1868;  the  condition  and  amounts 
of  money  received  from  the  sale  of  tide  lands  and  invested  under  an  Act  entitled  "An  Act  for 
the  endowment  of  the  University  of  California,"  approved  April  2d,  1870;  the  amount  of 
money  paid  to  the  Eegents  of  the  University  of  California  in  conformity  with  an  Act  entitled 
"An  Act  to  provide  for  the  support  of  the  University  of  California/'  and  the  several  dates  of 
payment  thereof,  approved  April  1st,  1872. 

SEC.  2.  As  soon  as  practicable  after  the  passage  of  this  Act  the  persons  named  in  Section  1 
of  this  Act  shall  proceed  to  examine  the  books  of  the  State  Controller,  the  Surveyor-General, 
the  State  Treasurer,  and  the  various  Acts  concerning  the  State  University,  for  the  purpose  of 
determining  the  condition  and  disposition  of  the  various  funds  mentioned  in  Section  1  of  this 
Act. 

SEC.  3.  It  shall  be  the  duty  of  the  said  Commission  to  report  the  results  of  their  examina- 
tions, as  provided  in  Sections  1  and  2  of  this  Act,  to  the  next  Legislature  of  this  State. 

In  obedience  to  the  above  recited  Act  we  have  the  honor  to  report 
as  follows : 

The  books  of  the  Register  of  the  State  Land  Office  show  that  of  the 
seventy-two  sections  (46,080  acres)  of  Seminary  Land  above  referred 
to,  46,042.13  acres  have  been  selected  by  the  State,  and  47,771.35  acres 
have  been  sold  (1,760  acres  was  sold  and  afterwards  forfeited  and  sold 
again);  from  which  it  appears  that  said  grant  is  about  exhausted. 
According  to  the  Register's  books  there  has  been  paid  to  the  several 
County  Treasurers  of  this  State,  on  account  of  the  sale  of  the  said 
seventy-two  sections,  the  sum  of  $89,736  76.  The  Controller's  books 
show  that  of  the  said  sum.  of  $89,736  76  there  has  been  paid  into  the 
State  treasury,  from  date  of  first  sale  to  July  1st,  1879,  the  sum  of 
$67,012  47,  of  which  $44,632  24  is  principal  and  $22,380  23  is  interest. 
The  disposition  of  the  said  sum  of  $44,632  24  principal  was  as  fol- 
lows: $3,094  87  was  paid  into  the  State  School  Land  Fund  ;  $9,665  05 
was  paid  into  the  Seminary  Fund,  and  $31,872  32  was  paid  into  the 
University  Fund.  The  said  sum  of  $22,380  23  interest,  as  above, 
was  disposed  of  as  follows :  $3,281  50  was  paid  into  the  School  Fund ; 


$10,364  25  was  paid  into  the  Seminary  Fund ;  $8,107  28  was  paid  fnto 
the  University  Fund,  and  §627  20  was  paid  into  the  University  Endow- 
ment Fund.  Thus  it  appears  that  while  the  Register's  books  show 
sales  of  said  Seminary  Lands  to  the  amount  of  §89,736  47,  the  Con- 
troller's books  show  but  §67,012  47  as  the  amount  actually  paid  into 
the  State  treasury  as  the  result  of  said  sales,  leaving  a  balance  appar- 
ently unaccounted  for  of  §22,724  29. 

Of  Public  Building  Lands  mentioned  in  the  foregoing  Act  (creat- 
ing Commission),  the  books  of  the  Register  of  State  Lands  show 
that  of  the  ten  sections  granted,  the  State  has  selected  6,195.99  acres, 
and  has  sold  7,055.82  acres  (974.24  acres  having  been  sold  and  for- 
feited and  resold,  leaving  6,081.58  acres  as  the  amount  actually  sold 
by  the  State),  and  that  there  are  320  acres  thereof  yet  unsold;  that 
there  was  realized  from  said  sales  the  sum  of  §10,186  14,  making  the 
total  amount  received  bv  County  Treasurers  for  sales  of  both  kinds 
of  land  (as  per  Register's  books)  to  be  §99,922  90.  The  Controller's 
books  show  that  of  the  said  sum  of  §10,186  14  there  has  been  paid 
into  the  State  treasury  for  principal  §5,451  91;  for  interest,  §2,104  99; 
total,  §7,556  90. 

The  said  principal  sum  of  §5,451  91  was  disposed  of  as  follows : 
§306  25  was  paid  into  State  School  Land  Fund;  §374  05  was  paid  into 
the  Public  Building  Fund,  and  §4,771  61  was  paid  into  the  Univer- 
sity Fund.  The  said  interest  of  §2,104  99  was  disposed  of  as  follows: 
§171  OS  was  paid  into  School  Fund;  §834  86  was  paid  into  the  Public 
Building  Fund,  and  §1,099  05  was  paid  into  the  University  Fund. 
From  which  it  follows  that  of  the  said  sum  of  §10,186  14,  result  of 
sales  as  shown  by  Register's  books,  there  is  apparently  unaccounted 
for  by  Controller's  books  the  sum  of  §2,629  24.  This,  added  to  the 
amount  of  sales  of  seventy-two  sections  apparently  unaccounted  for, 
to  wit,  822,724  29,  makes  a  total  (from  sales  of  both  kinds  of  land)  of 
§25,353  53  that  does  not  seem  to  have  found  its  way  into  the  State  treasury. 

Of  the  above  amounts  produced  by  the  sales  of  Seminary  and 
Public  Building  Land,  and  paid  into  State  treasury,  the  Control- 
ler's books  show  that  the  School  Fund  received  the  sum  of  §3,452  58, 
and  the  State  School  Land  Fund  received  the  sum  of  §3,401  12. 

In  reference  to  the  balance  aforesaid  of  §25,353  53,  apparently 
unaccounted  for  by  Controller's  books,  it  is  impossible  to  speak  with 
certainty,  as  the  Auditor's  reports,  upon  which  County  Treasurers 
made  their  settlements  with  the  State  from  the  first  sales  up  to  the 
latter  part  of  the  year  1863,  did  not  give  the  necessary  information  to 
enable  the  Controller  to  tell,  in  many  instances,  whether  the  land 
money  reported  was  for  School  Land,  Seminary  Land,  or  Public  Build- 
ing Lands.  In  a  number  of  instances  where  the  Register's  books  show 
that  Seminary  and  Building  Land  money  should  have  been  reported 
from  the  different  counties,  the  Auditor's  reports  from  said  counties 
for  said  time  show  no  money  other  than  School  Land  money. 

From  all  the  facts  we  can  gather  in  the  matter,  we  are  of  the  opin- 
ion that  most  of  the  said  sum  of  §25,353  53,  given  above  as  apparently 
unaccounted  for  by  the  Controller's  books,  was  paid  into  the  State 
treasury  to  the  credit  of  the  School  Fund.  There  was  a  portion  of 
the  said  sum  lost  to  the  State  on  account  of  defalcations  of  County 
Treasurers — how  much  your  committee  cannot  ascertain.  Consider- 
ing that  the  whole  of  said  sum  was  truly  accounted  for  by  County 


Treasurers,  and  that  the  State  was  to  be  held  responsible  for  the  same 
to  the  University,  the  account  would  stand  as  follows,  viz.: 

Whole  amount  of  Seminary  Land  and  Building  Land  money  received  by  County 
Treasurers  from  date  of  first  sale  of  said  lands  to  July  1st,  1879,  and  not  accounted 
for  by  Controller's  books $25,353  53 

Less  Treasurers'  commissions  on  total  receipts  from  sales  of  said  lands,  to  wit,  3  per 
cent,  on  $99,922  90 2,997  68 


Leaving  the  net  sum  due  University  to  be $22,355  85 

To  this  must  be  added  the  sums  of  $3,452  58  and  $3,401  12  of  Seminary  and  Public 
Building  Land  money,  shown  by  Controller's  books  to  have  been  paid  into  the 
School  Land  Fund  and  School  Fund,  a  total  of 6,853  70 


Making  a  grand  total  of $29,209  55 

Which  last  named  sum  represents  the  greatest  amount  that  could 
have  been  diverted  from  the  proceeds  of  Seminary  and  Building  Lands 
to  the  School  and  School  Land  Funds,  from  date  of  first  sale  to  July 
1st,  1879,  and  we  find  that  most  of  said  sum  of  $29,209  55  was  paid 
into,  or  should  have  been  paid  into,  the  State  treasury  prior  to  March 
26th,  1868,  the  date  of  the  said  transfer  Act,  to  which  our  attention 
is  directed. 

The  Controller's  books  show,  that  from  the  proceeds  of  Seminary 
and  Public  Building  Lands,  there  was  paid  into  the  State  treasury, 
up  to  July  1st,  1879,  the  sum  of  $74,569  37  ;  that  $0,853  70  thereof  was 
paid  into  the  State  School  Land  and  School  Funds,  as  aforesaid,  and 
used  for  school  purposes,  and  the  remainder,  to  wit,  $67,715  67  was 
drawn  by  the  Regents  of  the  University  for  the  support  and  endow- 
ment of  said  institution. 

TRANSFER   OF   BONDS   AND   MONEY. 

On  March  26th,  1868  (see  Statutes  1867-8,  page  357),  the  Controller 
was  ordered  to  transfer  to  the  University  Fund  State  seven  per  cent, 
bonds  to  the  amount  of  $35,100,  and  also  to  transfer  from  the  School 
Fund  to  the  University  Fund  the  sum  of  $44,064  in  coin.  In  obedi- 
ence to  said  Act  the  Controller  transferred  from  said  School  Fund  to 
said  University  Fund  the  said  sum  of  $44,064,  in  coin,  and  transferred 
to  said  University  Fund  State  seven  per  cent,  bonds  to  the  amount  of 
$35,000,  which  said  bonds  had  been  purchased  for  and  were  held  in 
trust  for  the  common  schools  of  the  State.  We  have  endeavored  to 
ascertain  the  reason  for  this  order  to  transfer  from  the  common  schools 
to  the  University  the  large  sum  of  $79,064.  Upon  consulting  the 
Journals  of  the  Senate  and  Assembly  for  the  year  1868,  we  found  that 
the  said  bill  for  said  transfer  was  passed  through  both  Houses  with- 
out reference  to  any  committee  whatever — it  passed  the  Senate  on 
March  24th,  1868,  and  in  the  Sacramento  Union  of  March  25th,  1868, 
we  find  the  explanation  of  the  bill  by  its  author,  Mr.  Hager,  and  by 
Lieutenant-Governor  Holden,  in  words  as  follows: 

"By  Mr.  Hager — An  Act  to  require  Controller  to  transfer,"  etc. 

The  author  stated  that  the  design  was  to  create  a  fund  to  put  the  machinery  of  the  State  Uni- 
versity into  motion.  The  proposition  was  based  upon  the  fact  that  the  money  in  question 
belonged  properly  to  the  University  Fund.  The  amount  was  some  $35,100.  He  suggested  that 
the  Lieutenant-Governor  have  leave  to  explain  the  matter  more  fully,  as  he  was  a  member  of 
the  University  Board. 

The  Lieutenant-Governor  proceeded  to  state  that  the  Seminary  Fund  was  derived  from  the 
grant  of  seventy-two  sections  of  land  donated  by  Congress  to  the  State  for  a  seminary  of  learn- 
ing. There  were  in  it  46,800  acres,  which  were  sold  under  an  Act  providing  therefor,  and  also 


6 

for  the  sale  of  the  500,000  acres,  at  $1  25  an  acre.    A  portion  of  the  proceeds  had  been  used  by 
the  School  Fund  since  1858-9,  and  there  had  grown  up  an  interest,  due  the  Seminary  Fund 
from  the  School  Fund,  amounting  to  $44,064.    The  bill  provided  for  the  return  of  these  amounts, 
and  also  for  the  disposition  of  a  balance  derived  from  the  Public  Building  Fund. 
The  bill  was  passed  and  ordered  transmitted  to  the  Assembly. 

The  foregoing  explanation  contains  all  the  light  thrown  upon  the 
subject  of  this  transfer  that  our  researches  have  revealed.  It  does 
not  appear  that  any  one  was  acting  for  the  State,  or  on  behalf  of  the 
School  Fund,  or  that  a  proper  investigation  of  the  indebtedness  of 
the  School  or  State  School  Land  Funds  to  the  University  Fund  was 
had  at  the  time  either  by  committee  or  otherwise.  As  we  have 
shown  in  the  preceding  pages  of  this  report  that  not  more  than 
$29,209  55  could  have  been  diverted  from  the  Seminary  and  Public  Build- 
ing Land  Funds  into  the  School  Fund,  from  the  date  of  first  sale  to  July, 
1879,  we  are  forced  to  the  conclusion  that  more  than  $50,000  of  the 
transfer  of  $79,064,  made  under  the  Act  of  1868,  was  in  excess  of  the 
amount  due  from  said  School  and  State  School  Land  Funds  to  the 
University  Fund. 

ACT  OF  EIGHTEEN  HUNDRED  AND  SEVENTY. 

Under  "An  Act  for  the  endowment  of  the  University  of  Califor- 
nia," approved  April  2d,  1870,  we  find  that  the  Controller,  with 
money  received  from  the  sale  of  salt  marsh  and  tide  lands,  purchased, 
for  the  University,  State  bonds  of  the  par  value  of  8750,000,  and  that 
said  bonds  yield  an  annual  interest  of  $46,350.  We  are  of  the  opin- 
ion that  he  should  have  invested  in  bonds,  from  the  proceeds  of  the 
sale  of  said  tide  lands,  a  sufficient  sum  to  have  yielded  an  annual 
interest  of  §50,000;  but  whether  the  University  Fund  or  the  School 
Fund  was  injured  by  his  failure  to  do  so  depends  upon  the  construc- 
tion to  be  placed  upon  the  said  Act  of  April  2d,  1870.  to  which  the 
attention  of  your  honorable  body  is  directed. 

ACT  OF  MARCH   SECOND,    EIGHTEEN   HUNDRED    AND   SEVENTY-TWO. 

In  conformity  with  the  provisions  of  this  Act  the  Controller,  upon 
the  statements  of  receipts  and  expenditures  made  by  the  Regents  of 
the  University,  drew  warrants  in  favor  of  said  University  for  two 
years,  aggregating  the  sum  of  §126,437  41,  in  detail  as  follows: 


Dale  and  Number  of  \V  arrant,  and  Knnd. 

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From  the  above  it  appears  that  under  said  Act  the  sum  of  $126,- 
437  41  was  paid  to  the  University;  that  $64,468  62  thereof  was  paid 
out  of  the  General  Fund,  and  $61,968  79  was  paid  out  of  the  Univer- 
sity Fund;  but  we  find  upon  investigation  that  in  drawing  upon  the 
University  Fund  for  said  $61,968  79,  the  Controller  erroneously  over- 
drew said  University  Fund  to  the  extent  of  $7,312  18,  and  had  to 
transfer  that  amount  from  the  General  Fund  to  the  University  Fund 
to  meet  said  overdraft.  So  that,  in  reality,  of  the  $126,437  41  paid  to 
University,  as  aforesaid,  the  General  Fund  furnished  $71,780  80,  and 
the  University  Fund,  $54,656  61. 

Included  in  the  $54,656  61  of  University  money  used  by  the  Con- 
troller to  pay  deficiencies,  as  in  the  table  above  set  forth,  there  was 
the  sum  of  $9,870  60,  which  was  in  the  University  Fund  several 
months  prior  to  the  passage  of  the  Act  of  1872.  Of  this  sum  of 
$9,870  60,  $2,873  18  was  the  principal  obtained  from  sale  of  Seminary 
Land  ;  $959  92  was  interest  from  same  source,  and  $6,037  50  was  from 
interest  on  bonds  held  in  trust  for  University.  Whether  any  of  this 
$9,870  60  was  properly  used  by  the  Controller  to  pay  deficiencies  under 
the  said  Act  is,  to  say  the  least,  doubtful.  But  we  are  clearly  of  the 
opinion  that  the  sum  of  $2,873  18  principal,  for  Seminary  Land  sold, 
should  not  have  been  used  for  any  purpose  but  that  of  a  permanent 
endowment  of  the  University.  (See  Article  IX,  Section  IV,  old  Con- 
stitution.) There  was  also  principal  of  Seminary  Land  and  Public 
Building  Land  amounting  to  $4,470  49  received  into  the  University 
Fund  after  April  1st,  1872,  which  was  used  by  the  Controller  to  pay 
said  deficiencies,  and,  as  we  think,  used  wrongfully.  According  to  the 
construction  placed  upon  the  said  Act  of  1872,  by  the  authorities  of 
the  University,  the  Controller  used  more  of  the  interest  on  bonds  held 
in  trust  for  the  University  for  payment  of  deficiencies  than  was  allow- 
able. Whether  he  did  so  or  not  depends  upon  the  proper  construc- 
tion of  the  said  Act  of  March  2d,  1872,  to  which  reference  is  respect- 
fully made. 

W.  B.  C.  BROWN,  Controller, 
.   JOSE  G.  ESTUDILLO,  Treasurer, 
JO  HAMILTON,  Attorney-General, 
WILLIAM  MINIS,  Surveyor-General. 


NON-CIRCULATING  BOOK 


5334 


UNIVERSITY  OF  CALIFORNIA  LIBRARY 


